A Boutique Law Firm Serving Northern Kentucky and Ohio
Business Formation & Planning
Northern Kentucky Business Formation & Planning Lawyers
Our business law attorneys have experience running a business, so we understand the demands and needs for agile responses.
Starting a business is an exciting time, but it can also be a stressful one — ideas have to be developed, staff has to be hired, and property may need to be rented or leased. In the midst of all this, it might be easy to not think through one an important question — what structure will your business take? Our Northern Kentucky business formation and planning lawyers advise clients on their options, help them make the decision on what’s best for them, and assist with important steps to getting a venture off the ground.
Got an idea for a small business? Smith Law can assist with everything from formation decisions to ideas on how to get funding, to suggestions for marketing and legal help with licensing and insurance requirements. Our door is open to all, and we want to help.
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This option works when one person has sole ownership. Its advantage is simplicity — there is no board of directors, and taxes can be done with a single return. The downside is that there’s no liability protection. This means the owner’s personal assets can be at risk in a lawsuit.
When there are at least two owners involved, a general partnership can be considered. The primary advantage of a GP is with the tax code. The profits or losses are allowed to pass through to the owner’s personal tax return. A business going through losses in its early years is not uncommon, and this tax strategy can make the early challenges more manageable. But, like a sole proprietorship, there is no liability protection.
It’s not uncommon for businesses with multiple owners to see those owners have different levels of commitment and financial investment. The LP structure allows the more active owner(s) to have more legal authority over the direction of the business. The less engaged owner gets increased liability protection in exchange for the surrendering of some control.
The community benefits when people from diverse backgrounds can start their own businesses. Smith Law’s doors are open to everyone. We support women in business, and our founding partner, Attorney Shannon C. Smith, owns Revival, a vintage retail and bottle shop in downtown Covington. We understand the challenges that women entrepreneurs face.
You tell us your idea — we’ll tell you how we can help.
Incorporation means taking legal steps to separate a business from the owner’s personal assets. This allows liability protection. An owner’s house is protected from bankruptcy, a lawsuit, or any other legal action. The price of this protection is a considerable amount of documentation and more regulations to comply with. Our Northern Kentucky business formation and planning lawyers will be there to help clients with ongoing compliance.
S Corps & C Corps
S Corps and C Corps are both LLCs. Their difference is in tax and stock treatments. S Corps, drawing its name from subchapter S of the tax code, still allow profits to pass through to one’s personal tax return, thereby eliminating corporate taxes. But an S Corp can only issue one type of stock, thereby limiting its options for growth. C Corps, on the other hand, face corporate taxes, but there is no limit to the type or quantity of stock it can issue.
“Shannon Smith and her dynamic team have repeatedly translated my work into victories.” - Paul M. | Chief Goof Officer, Bircus Brewing Company / Circus Mojo
“They go above and beyond by responding timely and meeting our demanding timelines.” - Robert R. | President, QC Infusion
“She accomplished the impossible for me and gave me my future back.” - Giovanni L.